CPT - Embedded Expectations Analysis - 2018 09 21
Camden Property Trust (CPT:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Assets, with a 1.8x Uniform P/B. At these levels, markets are pricing in bullish expectations for the firm, but management is concerned about their Costa Hawks vote in California, their balance of transit-oriented developments, and rising construction costsSpecifically, management appears concerned about the upcoming Costa Hawkins vote in the state of California, and about rising construction costs in some markets. Additionally, they may lack confidence in their portfolio balance of new urban and suburban, transit-oriented developments. Furthermore, they may lack confidence in their decision to remain an unsecured borrower, and in their ability to forecast building costs. Moreover, they may be exaggerating the demand for multifamily apartment buildings, and their confidence that Denver will continue to be a strong market. Finally, they may lack confidence in the leasing of their Camden McGowen Station development in Houston, and appear to be exaggerating the value of the location of their Camden Buckhead development in Atlanta
Camden Property Trust is a real estate investment trust. The company and all its consolidated subsidiaries are primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. The company's properties provide residents with a variety of amenities common to multifamily rental properties. The company's operating properties are located in the following locations: Phoenix/Scottsdale, AZ; Los Angeles/Orange County, and San Diego/Inland Empire, CA; Denver, CO; Washington DC Metro; Southeast Florida, Orlando, and Tampa/St. Petersburg, FL; Atlanta, GA; Charlotte, and Raleigh, NC; and Austin, Dallas/Fort Worth, and Houston, TX.
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